Upside Ventures back new ventures as well as technology startup. At the same time, we also invest and build special and lucrative investment assets. It's because the upside potential is much higher than conventional investment or stock markets with transparent and manageable model with low risk and initial capital. This is a more long-term profitable path.
We seek qualified business and investment partners to join the venture.
2. １ Overview: BNaaA
２ Learning: Power of Network
3 Upside: Linear vs. Multiple
4 Opportunities: Invest vs. Create
5 Strategies: Horizontal vs. Vertical
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4. Overview: BNaaS
Biz Network as an Asset (BNaaA)
“Investment Properties” (e.g. Ichiba shop)
Focus on building the network as an entity
People to People (P2P)
Ongoing value growth while network expands
to regenerate exponential return
Leverage existing and established business
infrastructure and ongoing profit share model
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7. Power of Network
Social Network is about people, not Facebook which is just a platform
Facebook
Amazon
Rakuten
Professional
Social
Retail
Retail
24B
115B
157B
14B
User base
245M
1B
137M
100M
Revenue
972M
1.584B
61B
4.74B
Profit/Loss
21.6M
-64M
-39B
208M
Linkedin
Comparison
Valuation
Revenue/PL is based on FY2012 // Market Cap – Nov 8, 2013
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9. Power of Network: Rakuten (ecosystem)
・Shopping mall
・Auction
Common ID
Customer Flow
Rakuten Super Point
E-Commerce
E-Money
eBook
・Credit Card
・Advertisement
・Streaming
・Downloading
・Recruitment
・Marriage
Portal
&
Content
Card
Rakuten
Membership
Database
Banking
Travel
・Payment
・Consumer Loan
Securities
Telecom
・Stocks
・Bonds
・Trust Funds
・FX
・Hotels and Facilities
・Air Tickets
・Dynamic Packages
・Fixed IP Telephony
・Mobile IP
Telephony
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10. Power of Network: Rakuten (empowerment)
[Major Global
E-commerce
Competitors]
Product Centric
[Rakuten Ichiba]
Shop Centric
The Rakuten “Empowerment” model is
very unique and difficult to replicate
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11. Power of Network: Rakuten (empowerment)
Japan’s largest and the World’s 3rd* Largest Internet Mall
Merchants
39,000 stores*
Products
100 Million
2011 Sales
1 Trillion+
楽天会員数
78 Million+
(as of June 30, 2012, in Japan*
Global numbers higher)
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12. Power of Network: Rakuten (empowerment)
• Fashion is the largest genre on Rakuten Ichiba
• Top Genres: Bag, Shoes, Ladies Fashion
• In JP-only, 80M members
Rakuten Ichiba
1 Trillion Yen
Fashion Ichiba’s
Largest Genre
Global Strategy Vertical Expansion:
- Biggest business
potential
- Most “portable”
- Expand
horizontially
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13. Power of Network: Rakuten (empowerment)
B2C vs. B2B2C
B2C
R
- Linear growth
- Hard to scale
B2B2C – Scalable on a network
key factor: highly driven merchants network
Sales 1 Trillion Yen
R
<1K Account Mgr
40K Driven Merchants
Massive 80M users
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14. How to win
Replicate the business model
Simplify and adjust to different context
Leverage existing infrastructure / setup
Focus on building network across different
regions
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16. Upside: Linear vs. Multiple
Business / career path
One-time ($$$)
Most services and retail
businesses are based on 1:1
relationship with the clients or
consumers. That demand
much resources and time to
grow and scale
Investment
Banking
Consulting
Linear
Multiple
Business
Network
Retailing
Recurring
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17. Upside: linear vs. multiple
Business / career path
Linear
Retailing
Multiple
Consulting
Investment
Banking
Business
Network
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19. Opportunities – Invest vs. Create
Ways to capture value (e.g.)
Open Stock Market
Private Investment
Create
Facebook
SNS
VC / PE
Startups
Rakuten
Marketplace
Real Estate
SMB
Linkedin
network
Invest
Franchise
Return
“System” that generates value
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20. Return: Linear vs. Multiple
Benchmark with S&P 500 Index Total return (12.06%) vs Apple (175.6%)
http://ycharts.com/analysis/story/ten_biggestcap_stocks_just_two_outperform_the_sandp_500
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21. Return: Linear vs. Multiple
Highest S&P 500 Return is 15.96%; vs FB and Apple of multiples
http://ycharts.com/analysis/story/ten_biggestcap_stocks_just_two_outperform_the_sandp_500
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22. Investor: Value Proposition
Long Term Value
Risk / Stress
Return (Upside)
Scalability / Self-sustaining
(High quality products with
Self generating business model)
Min Risk / Stress free
(Managed by top professionals;
Full tranparency
Profit / multiple
(Low startup cost,
Highly profitable by multiple)
Team / Network
Elite team and network
(Highly selective elite network from
top schools and professionals)
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24. Strategies: Horizontal vs. Vertical
Retail
Horizontal
Shops
Singular
Vertical
Investors
Linear
DON’T focus on
“Warm network”
- Make this as a rule
Exponential
Grow the network
Horizontal
X
Vertical
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25. Retail: Product Strategy and Channel
Product Strategy
Selective Merchandising
Online Channels
Lifestyle Social EC
Salesforce
Global Distribution
Partnerships
Alliance / Community
(Unique, high turnover and Vol,
Strong Messaging)
(Targeted & Mass Vol at Wholesale
e.g. Fab, Birchbox, Clozette )
(Hire local “business dev associate”
e.g. Philipines, Jamaica, East EU)
Freshii / Forever Living
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29. Vertical: Network building
Investor
Invest microfund
(Form business entity by funding
new shops network and sales)
Shop Owner
Operate and build
Biz Developer
Manage and build
(New shop for retail and expand
The network
(Expand downline network)
Retail Sales
Focus on retail sales
(Through strong salesforce,
Convert them into new downline)
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32. Investment / Return
Invest
Define profit
target (30%48%)
Develop
Identify
market
Expand
Identify high
potential
sales
Hire Sales
Define
resources
Invest initial
capital
Develop
network
Concert into
Downline
Drive sales
growth
Build/Hire
Re-Invest
profit to hire
sales
(hands off)
Or take over
to grow
network
asset
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